Purchasing Property on the Sister Islands

[Scoooter961]

but, is there anywhere to get tanks filled?

 

[ScubaBunga]

I would assume the dive shops on LC and Brac would fill tanks for locals... Of course that may just be the justification I need to get that compressor I've been trying to work out the justification for!!

 

[mi000ke]

@mi000ke thanks for the info! How bad are the insurance costs? I would think that hurricane insurance would be pricey.

Building insurance ($24 million total coverage) - our share is $3500/year - covers all risks including hurricane and public liability

Contents (covers $120,000 of our internal condo contents for all risks) - $950/year (a bit more expensive because we have unit in rental)

Personal liability (if a renter slips on our kitchen floor and decides to sue us) - $1 million coverage $900/year

What about one off capital improvement fees? Have they assessed any since ownership above and beyond the monthly fees? Do you report the rental income as income?

If you've lived in a condo, then you are used to capital improvements happening all the time. Buildings and grounds need to be maintained, although every now and then one of the owners gets a harebrained scheme to build a waterpark in the front yard or some such silliness. We attend the annual condo meetings and try to provide the voice of reason. But in general, we do get hit for a moderate amount each year for general upkeep, but that is usually included in the budget and is part of the monthly condo fee.

As an aside, it is very important when purchasing a condo to do a thorough examination of the financial statements of the condo association. Ours had a very strong balance sheet and capital reserve fund, and an reasonable monthly condo fee per sq foot. It was also a newer building and built after the last hurricane disaster (Ivan, 2004) to the latest hurricane codes.

Regarding income, you are required by US law (assuming you are a US citizen) to report all world wide income. But income is a fuzzy number. Even though we are cash flow even or slightly positive, after all expenses and depreciation, we incur a small loss for tax purposes. Also, *hypothetically* if one were to leave the rental income in one's condo association account, and were to use that account to pay for all of the condo-associated expenses (phone, utilities, cable, water, insurance, cleaning, maintenance, new tv, dishware, beach towels, coffee maker, whatever) , and perhaps have any cash surplus issued to them locally, then there might not be a means by which another sovereign governing body that shall remain nameless would come to know about said surplus. So far, we are pretty much cash flow even, so not an issue.

 

[flyboy08]

Having renters pay the carrying costs is key to ownership! Kudos to you and the due diligence needed to see it through. Most of my assets have been derived from dealing in real estate off and on since 1988....even though I've worked for the "man", RE was a very profitable hobby....my last was engineering 200 acres of land into a 50 lot subdivision....which I received approvals and then sold it to Lennar....the housing market crashed a few month later!

 

[mi000ke]

Having renters pay the carrying costs is key to ownership! Kudos to you and the due diligence needed to see it through. Most of my assets have been derived from dealing in real estate off and on since 1988....even though I've worked for the "man", RE was a very profitable hobby....my last was engineering 200 acres of land into a 50 lot subdivision....which I received approvals and then sold it to Lennar....the housing market crashed a few month later!

Ha ha! Timing is everything. My wife and I also dabbled in many real estate ventures over the years (high rise apartment buildings, downtown condos, a Boston townhouse, a farmhouse in upstate New York ski country, a lake house in Maine, our neighbor's house, and several land deals), and to be honest I think a lot of it was luck and timing (and more luck). We lost on some of the "slams dunks" and made money on many of the sleepers. You never know. We did OK, and I guess diversifying helped. This one on GC was primarily a lifestyle decision, and the financials are icing on the cake. And the kids would much rather we leave them a condo on SMB than part of a high rise in Philly.

 

[vincent54]

Brac property has always been for sale, even before Paloma. Very little turn over. It is a pain to build and expensive. Good news is, it will never be developed or sold because of the poor air service to the island.

Best thing I ever did was build a small house on Brac. Love the neighbors, love the diving, love the sea, the dogs are friendly and the hospital will airlift you to Grand or Miami in an emergency. Zero crime and no worries about leaving for 2 or 3 months, the older locals keep an eye on things. One has a set of keys and turns the AC on the day I arrive.
Think of Brac as a tropical Northern Wisconsin, where people are actually friendly and nice.

Brac, fortunately, is not for everyone. And I won't rent the property. It's my dream, not theirs. I am the king of the crabs, chickens, rats, cats and scorpions. Cheers

 

[KathyV]

but, is there anywhere to get tanks filled?

I would assume the dive shops on LC and Brac would fill tanks for locals... Of course that may just be the justification I need to get that compressor I've been trying to work out the justification for!!

...Best thing I ever did was build a small house on Brac...

I am sure that @vincent54 will be able to advise you regarding tank fills on Brac.

 

[vincent54]

If the tanks are up to date with vip and hydro you can get them filled. I believe it is the same price as renting the tank, 10 for air and 12 for Nitrox. Cayman law requires one tank/one diver at a time so plan the first dives close to the shop!
Gone are the days of picking up three tanks for the day.

 

[releck97]

My wife and I seriously considered buying on Brac. We have since decided to do long term rentals. We are recently retired but still working part-time. It's going to be a couple of years before we can make it all come together due to kids still in college and 4 legged friends called basset hounds, but we did a "trial run" and love it! You can't beat the cost and there are no responsibilities. My sister and I co-own a couple of condos in Pompano Beach, so we can fly down there anytime for a warm get-away. They have been proven to be good investments as they are situated on the intra-coastal and are one block from the beach. The value of property on Cayman Brac seems to be stagnant at best.

 

[vincent54]

Agreed. Prices will always be high for good properties that will sell to a very limited market. Dogs are near impossible to travel to caymans and electricity is expensive. I like the Florida Keys but the cost was too much for what you get. However, there is a nice ranch for sale in Brac right in front of the Aquarium dive site in west end, less than 240 us and it has the best view of Little Cayman... it’s survived all the storms and just needs some cosmetic attention. Walked out to the tide pool and found these .. the Brac is still a healthy reef system